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Investing.com -- Amundi SA (EPA:AMUN) has delivered a stronger-than-expected set of fourth-quarter results for 2024, with several key areas contributing to the positive performance.
The company’s adjusted profit before tax reached €469 million, surpassing consensus expectations by 2%.
This was largely driven by higher-than-expected revenue, which benefited from a combination of favorable asset management flows and positive market effects.
The company reported assets under management of €2,240 billion, a 2% quarter-on-quarter increase and slightly ahead of the consensus forecast of €2,217 billion.
This growth was driven by improved net flows and market performance, which helped offset some of the pressure from a stable management fee margin.
The margin stood at 17.7 basis points, just in line with market expectations. Performance fees also exceeded expectations, reaching €57 million compared to the €43 million expected by consensus.
One of the standout results from Amundi’s report was its net flows, which amounted to €17.9 billion, significantly outpacing the consensus estimate of €7.9 billion.
The majority of the positive flow came from passive funds and active fixed income products. While real and alternative assets experienced flat net flows, and active equities and multi-asset strategies continued to see negative flows, the overall improvement in net flows was noteworthy.
Third-party distributors were the primary contributor to the strong result, with Amundi securing 12 new partnerships with digital distributors in 2024, bringing the total to 45 partnerships across Europe and Asia.
The company also reported a solid dividend per share (DPS) of €4.25, which was 2% above consensus estimates, further underscoring its strong financial performance.
Amundi indicated it has more than €1 billion in surplus capital available, which could be used for potential acquisitions or returned to shareholders.
Amundi’s cost-income ratio for the quarter stood at 52.1%, slightly ahead of consensus of 52.2%, reflecting a manageable increase in costs, driven mainly by acquisitions, investment initiatives, and inflation-related cost increases.
In terms of its outlook, Amundi highlighted good progress on its current plan, which runs through the end of 2025, though a new strategic plan is expected in 2025.
Despite the potential for changes in the near future, analysts at RBC Capital Markets noted that Amundi’s results were solid, with strong performance in net flows and revenue, positioning the company well for the future.